The services sector is raising fresh concerns over the ongoing challenges faced by it in the transition to GST. With only 15 days left till GST implementation begins, GSTN is yet to start accepting fresh registrations and is only accepting migration requests from service firms who are transferring from the present tax regime to GST regime.
The main bone of contention is that under the present regime, service firms were only required to get one service registration number for multiple offices across the country, however under GST the firm would have to undergo registration at each state it operates in.
“All service companies have been made to undergo a very cumbersome exercise of doing the registration process all over again, in relation to their branch registrations,” Mahesh Jaising, partner, indirect tax at BMR & Associates LLP said. “The key problem in hand is that the IT system and the GSTN system are not accepting new registrations during the current window opened for registration — it is currently confined only to migration.”